Beware of bets on US lottery, experts warn
IT has been billed as your big chance to win €455million by ‘betting’ on a supersized US lottery draw.
But no Irish winner of the US Mega Millions could ever receive more than half of that eye-watering jackpot, due to swingeing American taxes.
Even worse, you might never see a cent if you win big, as you do not physically possess the ticket, an Irish Daily Mail investigation has revealed.
In the run-up to Christmas, an Isle of Man-based online company, World Lottery Club, was offering Irish citizens the chance to play for huge prizes on Mega Millions, which operates from Georgia and is played in most states in the US.
Irish players have been invited to place ‘bets’ on the draw through third-party websites.
One prominent World Lottery Club advertisement on the website of an Irish national newspaper offers, tantalisingly: ‘Lottery frenzy sweeps Ireland as €455million ($540million) could be won tonight. Now Irish players can have a shot at winning the US MegaMillions.
‘A monumental win like this would put you at 31st place on Ireland’s rich list – ahead of world-famous dancer Michael Flatley.’
However, it doesn’t mention the fact that all lottery wins in the US are heavily taxed – unless you opt to wait 29 years to receive the full advertised amount under an ‘annuities’ scheme.
Most winners go for the immediate lump-sum option – about 50% of which would go to the US taxman.
The Mail spoke to a number of experts, who warned against entering any US lottery as an overseas player.
Karl Jennings, author of Your Lottery Syndicate Book, said: ‘You won’t be as rich as Michael Flatley, even if all your numbers come up, because of the annuities system and US federal taxes. If you take the lump sum, the winnings are even less.’
The Irish National Lottery’s expressed concern about a number of unregulated ‘parasite lotteries’ offered to Irish consumfor ers. It said there were an ‘increasing number of unregulated offshore lottery betting operators in Ireland, who offer bets on the outcomes of National Lottery draws as well as lottery draws all over the world.’
At Mega Millions headquarters in Georgia, a spokeswoman said it did not endorse any such websites, adding: ‘If you do business with one of these companies, you do so at your own risk.’
Furthermore, lottery spokeswoman Kelly Tabor pointed out that the retention of a physical lottery ticket remained essential claiming any win on lotteries the world over – and that you would not get one by playing outside the US.
She told the Mail: ‘Whoever is in possession of the winning ticket, it’s their ticket. It would make me scared if I was an Irish person who won a huge jackpot because you are at the mercy of these people.’
Challenged by the Mail, World Lottery Club said: ‘We are confident with offering the largest jackpots in the world.
‘Our players will receive the same size of the jackpot they would receive as an American player – in a lump sum or spread over 20 years.
‘We are very clear within our terms and conditions with regards to local taxes.’
‘At the mercy of these people’